Introduction to Finance and Accounting

Module Title	Introduction to Finance and Accounting
Module Code	25-4009-00L (BTEC - 25-4H09-00S/L)
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	See Module Information Table
Level	4
Credit Points	20

Assessment Mode Weighting	Coursework	50%
	Examination	50%

Pre-requisites	None
Co-requisites	None

Class Contact Hours
Average Weekly	1.5

Directed Learning
Average Weekly	5

Module Leader	Judith Richardson
	Sheffield Business School
Module Banding	A
Approval Status	Validated

Rationale

Accounting is the process of classifying, measuring and communicating the economic transactions of business organisations. Accounting provides the language of business & finance, and both investors and business managers need to understand the terminology and basic concepts of accounting in order to make informed decisions.

Summary of Aims

To present an introduction to financial & management accounting and the types of information which each provides.
To introduce the basic accounting concepts & procedures used in the preparation of financial statements and to enable basic interpretation of the financial performance and position of business organisations,
To introduce the major techniques used in management accounting and to develop an appreciation of the role of management accounting in organisational planning, control, decision making, and performance evaluation.

Anticipated Learning Outcomes

On completion of the module, the student should be able to:

Define and use the basic terminology of finance & accounting.
Explain the fundamental concepts and principles of financial and management accounting.
Apply appropriate numerical procedures and techniques in preparing financial statements and internal management reports.
Interpret, at a basic level, the accounting information produced.
Communicate effectively through the use of established formats and descriptive writing.

Assessment and Feedback Strategy

Coursework will focus on the indentification of terminology and the application of some accounting procedures and techniques in practical problem solving and will also include some descriptive writing and interpretive eveluation.

Teaching and Learning Strategy and Methods

Topics are introduced through a combination of lectures with the emphasis in seminars on practical application of those opics through the working of accounting problems and exercises. The exercises are designed not only to develop competency in numerical procedures and presentation, but laso nterpretive skills. Both the practical and interpretive elements of the module are supported by the use of two inter-active computer-based learning programmes.

Indicative Content

Financial Accounting

Introduction to limited companies - their legal structure & financing
The basic accounting equation and the reporting of position
Income measurement and the reporting of profit (loss), including the treatment of fixed assets.
Accounting treatment of fixed assets.
Basic interpretation of performance & position using ratio analysis

Management Accounting

Differences between operating profit and operating cash and the importance of working capital.
The purpose and vocabulary of cost classification
Marginal costing: breakeven analysis & applications to other short-term decision making situations
Absorption costing: overhead analysis & use of the use of overhead absorption rates in costing products & jobs
The budget process, including preparation of production, cash and flexed budgets

Given its introductory nature, the module concentrates on the business & accounting environment of the United Kingdom. When appropriate, however, comparisons are drawn between the United Kingdom and other countries.

Indicative Reading List

Recommended reading is based upon textbooks written for non-accounting students.

Two possible recommended books are:

Accounting & Finance for Non-Specialists by P. Atrill and E. McLaney (3rd edition, Prentice Hall, 2000)

Business Basics: Accounting (2nd edition, BPP Publishing, 1997).

Module Assessment Criterion - Degree Students

Learning Outcome	Assessment Criterion	Level Descriptors
Learning Outcome	Assessment Criterion	Fail (below 40%)	Pass (40 - 59%)	2.2 & 2.1 (50 - 69%)	Distinction (70% & above)
Outcome 1 Define & useterminology	Final examination	Poor recall of learning support materials. Little or no abilityto identify & define terminology.	Adequate recall of learning support materials. Some ability to identify & define terminology.	Good recall of learning support materials. Ability to identify & define most terminology.	Excellent recall of learning support materials. Ability to identify & define all major terminology.
Outcome 2 Explain basic principles of financial & management accounting	Final examination	Failure to distinguish between functions of financial & management accounting. No or little accuracy in explaining concepts & principles.	Basic recognition of the functions of both financial & management accounting. Ability to describe some concepts & principles accurately.	Good recognition of the functions of both financial & management accounting. Ability to explain most concepts & principles logically and provide some specific examples.	Good recognition of the functions of both financial & management accounting. Ability to explain all major concepts & principles logically and provide a range of specific examples.
Outcome 3 Apply accounting procedures & techniques	Coursework & Final Examination	Inaccurate selection of data or inappropriate application of numerical procedures & techniques. Little or no accurate computations.	Some errors in selection of data or application of numerical procedures & techniques. Some accurate computations.	A few errors in selection of data or application of numerical procedures & techniques. The majority of computations are accurate.	No or only minor errors in selection of data & application of numerical procedures & techniques. All or most computations are accurate.
Outcome 4 Interpret accounting information	Coursework & Final Examination	No or inaccurate evaluation of numerical results and/or business activities.	Some relevant evaluation of numerical results and business activities.	Reasoned evaluation of numerical results and business activities.	Thorough & perceptive evaluation of numerical results and business activities.
Outcome 5 Communication	Coursework & Final Examination
Numerical presentation		No or unreadable workings. Inaccurate or inappropriate use of formats.	Some workings shown. Adequate use of formats.	Most workings shown. Good use of formats.	All relevant workings shown Excellent use of formats.
Written language		Poorly written. Difficult to under-stand due to mis-use of vocabulary & large number of grammatical errors. Answers have little or no organisation.	Understandable, but some mis-use of vocabulary and various grammatical errors. Answers show basic organisation.	Most of the writing is clear with good choice of vocabulary and few grammatical errors. Answers show logical organisation.	Clearly written throughout with extensive range of vocabulary and no, or very minor, grammatical errors. Answers show logical organisation.

MODULE ASSESSMENT CRITERION - BTEC STUDENTS

BTEC Common Skills

Assessment Criterion

Working Towards

Pass

Merit

Distinction

Transfer of Skills

Coursework &

Final Examination

Poor recall of learning support materials.

· Little or no ability to identify/define terminology;

· Little or no accuracy in identifying or explaining the functions of financial & management accounting..

Adequate recall of learning support materials.

· Ability to identify/define basic terminology;

· Basic functions of financial & management accounting are accurately identified & explained.

Good recall of learning support materials.

· Ability to identify/define the majority of terminology;

· Most functions of financial & management accounting are accurately identified & explained.

Excellent recall of learning support materials.

· Ability to identify/define all major terminology;

· All major functions of financial & management accounting are accurately identified & explained.

Problem Solving

Coursework &

Final Examination

Fail to demonstrate correct recognition & classification of data and/or inaccurate selection of appropriate accounting procedures.

Demonstrate correct recognition & classification of some of the items in the data and select some appropriate accounting procedures.

Demonstrate correct recognition & classification of most of the items in the data and select a majority of appropriate accounting procedures.

Demonstrate correct recognition & classification of nearly all of the items in the data and select appropriate accounting procedures in nearly all cases.

Numerical skills

& techniques

Coursework &

Final Examination

· No or unreadable workings.

· Fail to apply relevant techniques correctly and/or perform basic calculations accurately.

· Inaccurate or inappropriate use of formats in presenting final results.

· Some workings shown in readable layouts

· Apply some relevant techniques correctly & perform basic calculations with few inaccuracies.

· Adequate use of formats in presenting final results.

· Most workings shown in good layouts.

· Apply a good range of relevant techniques correctly and perform calculations with few inaccuracies.

· Good use of formats in presenting final results.

· All relevant workings shown in good layouts.

· Apply most of the relevant techniques correctly and perform complicated calculations with no or only minor inaccuracies.

· Excellent use of formats in presenting final results.

Range of Thought Processes

Final Examination

· No or inaccurate analysis of accounting information.

· No relevant interpretation of numerical results and/or business activities.

· Little or no ability to explain concepts & principles accurately.

· Basic analysis of accounting information.

· Some relevant interpretation of numerical results and/or business activities.

· Ability to explain some basic concepts & principles accurately.

· Good analysis of accounting information.

· Well reasoned interpretation of numerical results and/or business activities/

· Ability to explain most concepts & principles accurately.

· Excellent analysis of accounting information.

· Thorough interpretation of numerical results and/or business activities.

· Ability to explain all major concepts & principles accurately..

Communicate

in writing

Final Examination

Poorly written. Difficult to understand due to mis-use of vocabulary and large number of grammatical errors.

Understandable, but some mis-use of vocabulary and various grammatical errors.

Most of the writing is easy to understand with good choice of vocabulary and few grammatical errors.

Clearly written throughout with excellent use of vocabulary and no, or very minor, grammatical errors.

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